"Nikkie Adams" wrote in message
link.net...
We are in a some what unusual situation right now. We are purchasing my
bestfriends home.
We have all our financing approved and were ready to close when our friend
found out that
they are $10,000 short of a total pay off of the 1st and 2nd Mortgage.
Sooo
they tried to get
a loan to cover all costs but due to sever financial troubles and their
business (self employed) going belly up no
one will give them the loan. They since have started proceedings to have
the
2nd mortgage lien transfered
to their current home but it is taking a long time. In the meantime they
stopped making Mortgage payments
on the house we are buying. They did talk it over with their bank sent
them
the Sale Contract and our loan
Approval letter to them to show our intent to purchase. In the meantime we
have moved into the home and
are waiting for this transfer process to happen. Let me back up some we
had
to sell our home to make this
purchase. Our friends held onto this house 8 months so we can buy it(yes
it
took us 8 months to sell)
. They made payments up to Feb 1, 2003 then stopped making payments due to
financial and health issues.
We sold our home in April and signed an Agreement to Purchase and
deposited
Earnest Money in April for the house we are buying.
It is in April my friend notified the first mort. holder of the
aggreement,
sent in the Sales Contract and our Loan Approval letter.
We closed on our home in May. Obviously, we had to move and being as we
were
buying our bestfriends house and it was empty
our friends gladly gave us the key and had us move in.
Here we are in the middle of July we just got a foreclosure notice. The
house will be up for Auction on
Nov. 21, 2003. My friend called her mortgage company to find out what it
meant for the pending sale
they said as long as all debt was paid by Nov. 21 we were fine.
We do now have a closing date of Sept. 1st but there are other potential
problems lurking (IRS).
Would it be a good idea to have our friend pursue a Short Sale? We do not
want to loose this home!
It is our dream home.
I have a call into an Attorney for legal advice. I don't fully understand
what a Short Sale is all about.
I do realize to take advice from a newsgroup with a grain of salt. Just
curious what some might do
if they were in the same boat.
Thanks!

this is Turtle.

I don't know the exact details here but here is one thing you may want to
look at.

If the home is sent to the City , county, state, or IRS sale . You can get a
shot at buying it from them and might be a very much lower price than you
was going to pay for it in the first place. If your buddy does mess up and
not get it paid for don't worry for on Nov. 21, 2003 you can bid on it to
buy it from them. Have your bank loan ready to cut a check and buy it from
them. the bank , loan companys will only bid what they think they could
maybe get for it on the open market or in some cases bid what they really
got in the property. If you bid one dollar over fair market value. You can
have the house at that price. All sheriff or IRS sales are final and no
other people or other can come back on you for other payments. these sales
are final and all debt are cleared on the property when it is sold.

Another ideal here too. Talk to the morgage companys and tell them you want
it and make me a deal or price to sell it to me before the sale and if they
wait till after the sale they don't need to talk to you for you will be
buying it at fair market value or what ever the price it sales for. these
people know when to cut a deal and not have to take a lost on it when
someone like you want to take this bad loan off their books. They are not
dumb and will cut you a deal in a heart beat. I bought a rent house like
this and paid for it before it ever went to the sheriff sale for the Loan
company. i bought it for 10% less than apprasial price before the sale
started. I just cut the deal with the lenders and we cut a deal.

It's dealing time right now.

TURTLE